An electronics firm was contemplating what attributes would appeal to its customers if it were to issue a new wearable. The features that the brand team focused on, and the dummy variable codes, were these:

Design appearance: wristwatch (1) earbuds (0)

Apps activated by: touch (1) voice (0)

Annual fee: $0 (1) $240 (0)

Co-branding with teams: yes (1) no (0)

They ran a conjoint study on every 10th customer who came into one of their retailer partner's stores until they had a sample of 100. The four factors listed above result in 16 combinations (2222=16). Each person rated the 16 possible options from 1 (would not consider buying such a wearable) to 100 (would definitely purchase such a unit). The regression results follow:

Wearable attractiveness = 0.6 wristwatch + 0.2 activation + 0.9 fee + 0.1 co-branding

Case Discussion Questions

1. We need a proper introduction of the case. 2. What features matter to customers, and which do not?

3. What would the optimal wearable look like?

4. Are you worried at all about the sampleare customers who visit the retailer representative of those who might purchase online?

5. If you were to cluster the customers first, and then run a separate conjoint on each cluster, do you think the results would vary? Could the company create different wearables to satisfy multiple segments?

What features do you wish the company had included that might appeal to customers more?

6. we need proper references to justify it